Greggs, a popular bakery chain, has issued a warning to customers about an inevitable rise in prices across its product range. The chain attributed this price increase to soaring employment costs and cited lower consumer confidence towards the end of the previous year as a contributing factor to declining sales. Greggs, one of over 70 businesses that communicated concerns to Chancellor Rachel Reeves, highlighted that changes announced in the October Budget have made price hikes a certainty.
In a statement, Greggs expressed confidence in its ability to offset cost inflation while maintaining its value leadership. Despite a more challenging market backdrop in the second half of the year, the bakery chain reported a 2.5% growth in fourth-quarter sales. The quarterly results pushed Greggs’ annual revenue past £2 billion for the first time in 2024, showing an 11.3% increase from the previous year. However, sales, including popular items like sausage rolls and Festive Bakes during Christmas, did not meet the 5% growth seen in the previous quarter.
Chief executive Roisin Currie acknowledged that lower consumer confidence continues to impact high-street footfall and expenditure. Despite this, Currie remains optimistic about Greggs’ value-for-money offerings and the quality of its freshly prepared food and drinks, positioning the chain well to navigate challenges anticipated in the coming year. Greggs is confident in the long-term growth opportunities despite the current headwinds.
The bakery chain’s announcement serves as a heads-up for customers to expect price adjustments as Greggs navigates rising costs while striving to provide quality and affordable products to its loyal customers. Customers may need to adjust their budgets accordingly when indulging in their favourite pastries, sandwiches, and beverages from Greggs in the near future.